Thank you all for joining. I would like to welcome you to the Hudson Pacific Properties First Quarter 2023 Earnings Conference Call. My name is Brica and I'll be your operator for today's call. At this time, all participants are in a listen only mode, and you will have an opportunity to ask a question after the presentation. Please press star followed by one to ask a question, and star then two, if you change your mind at any point. And for operator assistance, it's star zero. Thank you. I would now like to turn the conference over to Laura Campbell to begin. Laura, you may begin. Good morning, everyone. Thanks for joining us. With me on the call today are Victor Coleman, CEO and Chairman, Mark Lammas, President, Harout Diramerian, CFO, and Art Suazo, EVP of Leasing. Yesterday, we filed our earnings release and supplemental on an 8-K with the SEC. Both are now available on our website. An audio webcast of this call will be available for replay on our website. Some of the information we'll share today on the call is forward-looking in nature. Please reference our earnings release and supplemental for statements regarding forward-looking information, as well as the reconciliation of non-GAAP financial measures used on this call. Today, Victor will discuss macro conditions in relation to our business, Mark will provide detail on our office leasing. Harout will review our financial results and 2023 outlook. Thereafter, we'll be happy to take your questions. Victor? Good morning, everyone, and welcome to our 1st quarter call. In the first few months of the year, macroeconomic challenges have persisted, exacerbating uncertainty and putting downward pressure on office market fundamentals. We will touch on how this is impacting our leasing activity in a moment. Recently, however, we've seen much more of big tech return to work announcements, bringing employees back to office multiple days a week, citing performance and efficiency concerns. These include Amazon, Oracle, Redfin, Lyft, and DocuSign, to name a few. Council data and transit ridership also show improvement across our markets. With the return to office unfolding slower than many expected, we remain cautiously optimistic that these announcements and related trends will translate into increased physical occupancy and improved tenant demand at our assets. Important indicators continue to support the notion that the Bay Area and Seattle remain epicenters for talent and capital networks that drive the tech industry. For example, the 1st quarter venture capital investments was in line with historic 10-year average, with the Bay Area continuing to receive the bulk of these funds. The early 2020s brought a wave of funding accelerated by COVID-related macro forces with a minimal office leasing. Beyond AI, which has currently drive approximately 600,000 sq ft of requirements in the city of San Francisco alone, other sectors like cybersecurity, defense, and energy remain compelling areas for growth. While it would take time for this to positively contribute to our leasing efforts, it reaffirms our view that our office properties are located in compelling growth markets. Turning to our studios, last week, the Writers Guild of America elected to strike, leading to a halt in the domestic film and TV production. Unlike prior strikes, where production ramped up in advance, this was instead a significant slowdown in filming through the 1st quarter. We suspect this is primarily the result of streaming companies' more robust existing content pipeline, although the austerity measures as well may have played a role. For example, in the L.A. market overall, the 1st quarter filming and TV shoot days declined approximately 30% compared to the same period last year. This initial slowdown impacted independent studios and service providers such as ours, first as major studios consolidated productions on site. With the strike underway, productions at all studios have now been disrupted. This slowdown was a precursor to what we will experience during the strike in the past, with the overall economic impact to be felt much more broadly. In 2007-2008, the Writers' strike, which lasted 14 weeks, cost the California economy $2.1 billion or $2.8 billion in today's dollars. There have been seven such strikes since the 1950s, ranging from two to 22 weeks, with the average being 14 weeks. Whether brief or protracted, the strike will impact the entire studio business, albeit less for our Sunset studio assets, where nearly 70% of our state square footage is under multi-year leases with guaranteed minimums for service revenue. Lack of visibility around the strike's duration led us to suspend our 2023 FFO outlook and related studio assumptions. While we're still providing assumptions related to our 2023 office outlook, Harout's going to discuss this further on the call. These studio related union strikes are both temporary and relatively infrequent, and we believe underlying fundamentals for content production and thus for the studio business overall remain solid. Even if spend on high quality original content moderates in the coming years in pursuit of profitability, current estimates indicate it will be at least on par with last year's following a period of ramp up post-strike. In these uncertain times, we stay focused on what we can control, executing on leasing, prudently allocating capital, reducing corporate expenses, proactively working on asset sales, and further fortifying our balance sheet. We continue to limit upfront capital spend for market ready suites, common area, and base building improvements until we have certainty around demand. We're currently evaluating potential disposition of six distinct assets, including a land parcel. We've also recently received board approval to reduce our dividend by 40%-50%, with a precise amount to be finalized at our board meeting later this month. This will bring our dividend policy in line with other capital preservation efforts. However, even without the dividend reduction, we have a path to address all our maturities through year-end 2025, which Harout will also discuss later in this call. I'm gonna turn it over to Mark. Thanks, Victor. Our 344,000 sq ft of 1st quarter leasing activity reflects tenants' continued slow decision making, which notably decelerated amid recession concerns in the 3rd quarter and 4th quarter of last year. Our in-service office portfolio lease percentage was 88.7%, compared to 89.7% at the end of last year. Note this quarter we've added 10900, 10950 Washington to our future development pipeline. It is the only residential conversion we're considering at this point, and we're actively working through entitlements to build approximately 500 units. The decline in lease percentage was mostly attributable to small to mid-size expirations at our Peninsula and Silicon Valley assets. At the same time, the preponderance of our 1st quarter leasing activity also resulted from small sub-5,000 sq ft tenants in those markets. Our gap in cash rents fell approximately 3% and 5% respectively, with a decline mostly driven by a significantly below market 20,000 sq ft short-term renewal. Our tenant improvements were in line with the trailing 12 months per square foot average, but look higher on an annual basis due to a shorter weighted average lease term. Trailing 12-month net effective rents are nearly 6% higher than last year and in line with pre-pandemic, that is 1st quarter 2020 trailing 12-month net effective rents. The average weighted lease term of 42 months reflects the impact of three larger short-term renewals. For new deals alone, our weighted average lease term was 67 months, which is typical given an average size of 4,000 sq ft. Trailing twelve-month weighted average lease term is approximately 9% higher than last year and in line with our pre-pandemic trailing twelve-month weighted average lease term. We still have activity on both of our 2023 large block expirations, including 60% coverage on block space at 1455 Market. Given the broader dynamics in the mid-market neighborhood, we expect that backfill will take time. We also remain in discussions around a potential renewal with our full building tenant at Met Park North, even as we proactively market that space. In total, we currently have 47% coverage on our remaining 2023 expirations with an average tenant size of roughly 11,000 sq ft. Our leasing pipeline, which includes deals and leases, LOIs or proposals, has increased up 11% to two million sq ft since it dipped in 3 rd quarter of last year. The average deal size within our pipeline is 13,000 sq ft above the 8,000 sq ft on average for signed deals over the last five years. The weighted average lease term of deals currently within our pipeline is more closely aligned with our five-year average of 82 months. Separately, tours at our assets are at the highest level since 1st quarter of 2017. Since slowing in the 3rd quarter last year, the number of our tours has increased more than 30%, largely driven by activity at our Silicon Valley assets. First quarter tours represent over 1.8 million sq ft of requirements, up 130% since 3rd quarter last year, in part driven by an increase in average requirement size from 8,000 sq ft to 14,000 sq ft. While it remains unclear how quickly these trends will translate into signed leases, historically, we've seen a clear correlation between an uptick in tour activity and new deals. Now I'll turn the call over to Harout. Thanks, Mark. Compared to 1st quarter 2022, 1 st quarter 2023 revenue increased 3.2% to $252.3 million, primarily due to our acquisition of Quixote, which we purchased in the 3rd quarter of last year. 1 st quarter FFO, excluding specified items, was $29.7 million or $0.35 per diluted share, compared to $75.2 million or $0.50 per diluted share last year. Specified items in the 1st quarter consisted of transaction related expenses of $1.2 million or $0.1 per diluted share, compared to transaction related expenses of $0.3 million or $0.00 per diluted share, and a trade name non-cash impairment of $8.5 million or $0.06 per diluted share a year ago. The year-over-year decrease in FFO was mostly due to lower production activity impacting Quixote in the lead-up to the Writer strike. We were also impacted by higher interest expense and lower office occupancy compared to last year. First quarter FFO was in line with our expectations, but for studio results, particularly with respect to March projections. Our 1st quarter AFFO was $35 million or $0.24 per diluted share compared to $58.8 million or $0.39 per diluted share. The decrease was largely attributable to the aforementioned items affecting FFO. Our same-store cash NOI grew to $125.6 million or 7.2% from $117.2 million. Mostly due to significant office lease commencement at Harlow in 1918 Eighth, as well as higher production related revenue and lower operating expenses at Sunset Gower and Sunset Bronson Studios. During the first quarter, we repaid $110 million Series A notes and applied $102 million of sales proceeds from Skyway Landing to pay down our credit facility. At the end of the quarter, we had $828.3 million of total liquidity, comprised of $163.3 million of cash, of unreceived cash equivalents, and $665 million of undrawn capacity on our unsecured revolving credit. We have additional capacity of $138.9 million under our One Westside and Sunset Gower construction loans. At the end of the 1st quarter, our company's share of net debt to company share of undepreciated book value was 38.2%. 66.2% of our debt is unsecured and 90.3% is fixed or capped debt. As Victor noted, we continue to focus on delevering by exploring asset sales, financings, and cost and dividend reductions. Our anticipated dividend alignment will result in $58 million-$72 million of annual cash flow savings to further enhance our balance sheet. Market conditions have rightfully heightened focus on our debt maturities. I'll take a minute to walk through our exposure. Following our pay down of the Quixote loan in April, we have only one smaller maturity remaining this year, a $50 million private placement note. Our two 2024 maturities are both secured debt, the larger of which is One Westside, for which we have indicative terms from third-party brokers on a refinancing. With respect to our $98 million 20% ratable share of loans secured by Bentall Center maturing in July of next year, our partner, Blackstone, has already taken the lead in discussing with the existing lenders. As for our 2025 maturities, 96% of that indebtedness does not mature until the final two months of 2025, more than two and a half years from today. Three of our four 2025 maturities comprise nearly 2/3 of the maturing amount are secured by high-quality assets. 1918 Eighth's Element L.A. and Sunset Glenoaks, the first two of which enjoy high credit, singleton occupancy with remaining lease terms into 2030. Sunset Glenoaks will be a fully operational state-of-the-art studio campus before its 2025 maturity. Our fourth and final 2025 maturity consists of $259 million private placement loan scheduled to mature in December 2025. While we are more than two and a half years away from that maturity, we are focused on ensuring that we have capital availability to address the loan ahead of its repayment. Turning to our outlook, we are continuing to provide several 2023 assumptions, including those most closely associated with our office portfolio to provide continued visibility. However, due to the high level of uncertainty around the duration of the Writers' strike, we will not be providing a 2023 FFO outlook or studio-related assumptions at this time. Please note that we provided an office same-store cash NOI projection rather than our customary combined office and studio estimate in light of the Writers' strike and uncertainty. As always, our 2023 outlook excludes the impact of any opportunistic or not previously announced acquisitions, dispositions, financings, and capital markets activity. We'll be happy to take your questions. Operator? Thank you. If you would like to ask a question, please press star then one on your telephone keypad. If you change your mind, please press star two. The first question we have comes from Alexander Goldfarb, Piper Sandler. Yes. Hi, good morning out there. Two questions. First, Ha rout. On the guidance, the FFO suspension, is that solely due to the studios or were there some other changes in the core office? The reason I ask is the same-store cash NOI guidance range came down, as did the joint venture FFO contribution. Good morning, Alex. Thank you for the question. It's a good question. It is 100% due to the studio operations. The same-store NOI guidance, I don't know if you can tell from what we've disclosed, but went down quarter-over-quarter, primarily because the previous guidance provided had a combination of studio and office, whereas the guidance provided this time is only office. While, yes, there's a decrease quarter-over-quarter, but you can't tell from the previous disclosure it came down. To answer your question, it did come down about 50 basis points for the office NOI. That's not why that guidance was suspended. It's all due to the studio. The drop in the JV share of FFO is again related to studio, all of it. Office is first one was in line with our expectations and, while it's not, you know, blowing up and doing amazing, it is consistent with our expectations. Okay. The second question is on cost cutting. You guys laid out some planned asset dispositions, land dispositions, certainly cutting the dividend. From a platform perspective, what are some of the costs that you guys do you think that you could reduce out to also improve the overall cash flow generation of Hudson? I mean, you've covered, you know, the sort of the gamut there on where our focus is today. You know, we, you know, we continue to monitor other discretionary spend and look for ways to, you know, to, you know, make reductions where we can. I think the main impactful items are the items you listed, you know, perhaps starting with, you know, kind of dividend at the top of the list. In addition, I mean, we originally provided our guidance last quarter and obviously playing in the current quarter, which is a reduction of our G&A. You see the quarter-over-quarter decrease in terms of Q1 versus Q1, and the guidance provided is consistent with that. Lastly, Alex, as you've probably, you know, heard in the prepared remarks, I mean, you know, we have looked at assets and, you know, some of the assets that are not in the disposition line, but other assets that we would have had some capital expenditures allocated towards them, we've held off, because of maybe some lack of leasing activity or confidence in that and focus our energy on the ones that we see are more imminent to lease up. There's a combination of things, between what Harout and Mark said, and then obviously the dispositions of some assets. Okay. Thank you, Victor. You got it, Alex. We now have Michael Griffin of Citi. Thanks. It's actually Nick Joseph here with Michael. Just on the studio platform, obviously recognize, kind of removing the guidance, the uncertainty on the timing. You know, as you look back to history in maybe 2007, 2008, does it create pent-up demand when it ends, or is it really more just kind of lost revenue, as the strike is underway? That's a great question. I'll tell you, listen, we were around in the last strike and, you know, you heard our remarks. You know, we don't unfortunately have a seat at the table currently to sort of give an eye as to what is going on. We have a very sophisticated board, of which three are very involved in the entertainment business. We're getting some firsthand information of how negotiations are going. You know, that being said, I would akin this to, specific to your question, more correlated to COVID. When COVID hit us, you know, production stopped. Yes, there was writing, but all production had stopped for a period of time. Then it also, when it came back, and there is a downtime to ramp up, but when it came back, it came back better than anybody expected. We are assuming that the same example will occur here. There will be enough of a pipeline demand, and every major studio has come out to date and said they are not adjusting their budgets for content spend. That would lend us to believe that it's going to, you know, come back aggressively. If it's gonna come back, and to your direct question, correlated to year-end 2023, I don't know how they can produce all that content, when they're losing time. It will flow into seasonality of 1st quarter, which typically is the case. First quarter is always a seasonal, time, lower, and then it dips back up in the 2nd quarter. I think you're gonna see some seasonality on the positive side late this year and then early next as well. Thanks. Then just on guidance, would your intention be to resume full year guidance once the strike ends and you get more clarity, or would you even wait a little longer than that to see kind of the pickup as things resume? As soon as we have knowledge of the strike, and then indicative knowledge of activity is when we will resume guidance. Yes, when the strike is over, we should see a correlation to the amount of activity on the studio business in general, and that's when we will reinstate guidance. That's the intent. Thank you very much. Your next question comes from Nick Yulico from Scotiabank. Thanks. First question, I guess is, you know, on the studios, is there any way to give us any, you know, rough feel for how this could work from a maybe like every month, you know, there is a strike and how it's going to impact your business, realizing, you know, I think 2nd quarter and 3rd quarter is where you have more seasonal benefit from the studio business? Just trying to see if there's any parameters we can think about. You know, if we thought we could give you too much specifics, Nick, we obviously wouldn't have pulled guidance. You can look to our in a wide detail page of the supplemental to give you at least a sense of what the underlying expenses look like on a quarterly basis, and kind of what, you know, low revenues look like on a quarterly basis. We can't really give you much more to go by than that at this point because we don't know what revenues could look like even in a strike scenario, and what inroads perhaps we can make on expenses depending on how long the strike goes for. And Nick, you know, listen, this is, you know, the strike is a week old. We have access to our facilities. We have access to all of our product, all of our comms, all of our transpo. You know, we are looking at alternative sources of revenue. This is, you know, this is new to the uses of those revenue, but we will look to, you know, live events and we're gonna look to short-term production or various different venue hostings and the likes of that. There will be some revenue. We just have no idea what it's gonna be. The sales team is out there. That being said, as I said earlier in the last question, you know, we're looking at expense reduction throughout the entire studio business. The combination of that will sort of come out over the next couple of months if this lasts that long. Okay. Fair enough. Thanks. Second question just has to do with, you know, the covenants in the credit facility. You know, have you guys done a stress test on that in regards to a certain period of the strike? Then also factoring in some of the known moves that you have this year if you don't backfill those. Just, you know, your confidence in Dean as we roll forward through the year, you know, you guys still being okay with your covenants and your credit facility? It's a good question. We periodically or regularly look at our covenants and project out at least a year, sometimes two, depending on circumstances. In this case, you know, we feel, you know, barring anything bizarre happening, even with a three months strike, we are completely in line with our covenants. Okay, thanks. You said assuming some of that, something like a three-month strike, you feel like you're still good within your covenants? Yeah. Even going further out, we're in line with those covenants. Okay, great. Thanks. Just, I guess just one last question, if I could. You know, you know, Victor, the board, you know, the board addressed the dividend. I guess I'm wondering if there's another step that the board is gonna consider to address, meaning that, you know, at some point you make more crystallized, a certain level of asset sales to raise liquidity to, you know, to address future, debt maturities. You know, just wondering what the thoughts are on that. Thanks. Yeah, Nick, let's just Thanks. you know, on that specific aspect, you know, I think we laid out pretty concisely that between now and the end of 2024, we don't have anything major coming due. Considering 2025, we only have one piece of debt. Given just the liquidity that we currently have with a dividend savings, that effectively can be taken care of on a dollar for dollar basis. The rest of it is asset level. I hope that we sort of alleviated that thought process that has been sort of hovering over Hudson for the last several months that, you know, other than asset-related debt, which are high quality single-tenant assets, that we don't have any aspects of debt that we're concerned about replacing through end of 2025. That being said, I think the board has looked at this as a one-time cut, and given where we feel that the evaluation of what will transpire with some of the leasing that we project and hopefully the recovery of the entertainment business in a shorter form, based on the strike being resolved, we should be in great shape to continue to grow going forward. Okay, thanks, Victor. Your next question comes from Dylan Burzinski of Green Street. Hi, guys. Thanks for taking that question. Just, you know, curious if you can kind of give your overview of sort of the San Francisco market in general today. You know, recently we've seen several retailers announce that they're gonna be closing stores. Just curious, you know, how you guys see the recovery there playing back and maybe if, you know, things are a little bit worse on the ground today versus where we were, call it three to six months ago? Yeah, I mean, I'll jump in a little bit and then Harout can sort of take precedent. I mean, you're obviously, you know, seeing what's on the ground on the retail side. I think it is really a tale of, you know, two ends of the city, right? I mean, if you're looking at our assets at Rincon or at Ferry, you know, the activity is fairly robust. You know, we don't have any vacancy coming due to speak of. What we're seeing is a lot of interest or a lot of inquiries and interest if we did have vacancy on high quality assets. That I think you know is evident throughout the whole city on that end of the city for high quality assets. As you move towards the Tenderloin, you are seeing some impact here. I will say that, you know, the announcements of some of the retailers are not surprising given the safety and security concerns and crime. I do know the city is looking to, you know, fulfill an obligation on somewhat similar to a, you know, a focused plan that the mayor's office is trying to revive, you know, downtown San Francisco in the mid-market areas and the civic center areas. You know, I think that that process and plan is being laid out and the intent is to sort of spend $25 plus million in the police departments and expanding, you know, the street response teams and the likes of that, which will hopefully turn the city into a positive avenue and get out of what we're currently in today. On a highlight, which is, you know, limited in San Francisco right now, Dylan, I'm sure you're hearing about the demand for AI, and the demand for AI is what we've seen and what our people on the ground in the valley and the city have seen is really only in the city right now. It's somewhere around 600,000 sq ft of inquiries, one tenant has already signed, and it looks like there's another, six tenants in the marketplace looking for space. That could boost some form of a next step recovery, or at least a step recovery for San Francisco that we are keeping an eye on and evaluating. Yeah, that's definitely bolstered the demand in the market, you know, as Victor said, up about 600,000 sq ft, which is now, you know, brings the demand up to about three and a half million square feet. You know, people forget that the gross leasing has remained, you know, north of million square feet a quarter. We're battling the headwinds of net absorption. Relative to our portfolio, we've got, you know, in addition to the coverage we have on block, so about 270,000 sq ft, we have 150,000 sq ft of, you know, action on our vacancy up there. We are seeing that demand in that segment, outlooking, you know, taking their finger off the pause button and looking to transact. You know, it's definitely a positive sign. That's very helpful commentary, guys. Appreciate that. Maybe just one more if I could. You guys mentioned having or going to market with fixed assets. Maybe if you can just talk about sort of the profile of these assets, the geographies, that'd be helpful. Thanks. One asset we have, currently today, is in negotiations on contracts. Three assets we have, offers on, and two assets we are getting offers on on Friday. The assets are all in, California. I don't wanna talk specifics around which asset, one is a partial land, and the other three active office buildings. Sorry, six... five active office buildings. I don't know why I said three. Okay. Maybe, I mean, the office buildings, is that single tenant, long wall, value add type, or any additional detail there? Yeah. I think of them, the two of them are single tenants and the other three are multi-tenant assets. Awesome, appreciate it. Thanks. Thanks. We now have John Kim of BMO Capital Markets. Thank you. Good morning. I wanted to ask about the amount of the dividend cut, being, you know, when you compare that versus the studio NOI, which was about 13% of total NOI in 4th quarter, and this strike may last about a quarter. Why did you cut it or decide to cut it to 40%, 50%? Yeah, it's really not correlated to the studios at all. I mean, we plan our dividend for the long term, and the strike is a temporary event. If you look historically, we've had return of capital somewhere a bit north of 30%. Last year, we had return of capital north of 50% on, you know, kind of on a run rate basis. That is to say, without trying to handicap gains or losses on sale of assets, our view is that 2023 from a P&L point of view, can accommodate 50%. We've obviously, you know, you know, monitored what the implied yield of the dividend is. 50% cut is still, you know, a sizable yield. You know, we're looking for ways to retain our lowest cost of capital. All of those considerations factored into the decision around the 50% cut. The studio performance is, really has nothing to do with that. What would be your priority for use of proceeds? Yeah. Deleverage of the balance sheet and liquidity. Okay. On the studio NOI, can I just ask, with the strikes happening now, what percentage of your rental revenue goes to zero? The same question on service and other. On the OPEX side, how much of the expenses are fixed versus variable? You can point you back to the NOI detail. You can see in the same store NOI, the studio same store NOI detail, how well the legacy brick and mortar held up, right? That's the 35 stages, the Sunset Gower, Bronson, and Los Angeles. We mentioned in our prepared remarks that roughly 70% of the stages there, which are, you know, what largely drive the revenue there, are under multi-year agreements that have guarantees on ancillary revenue. It shows up in how well those studios held up. There'll be a bit of impact from the strike because not all the stages there, like, roughly 30% of the stages there are not under multi-year agreements, it'll be a little bit of impact. Then you can see how the non-same store, which is, Quixote, Star Waggons, and Quixote, how they performed, in the lead up to an anticipated strike. I, you know, I encourage you to look at that detail. Thanks for the color. Thank you. We now have Blaine Heck of Wells Fargo. Great. Thanks. good morning out there. Victor, we've heard a lot of optimism around the return to office for some of the tech tenants that were most insistent on hybrid or remote work in the midst of the pandemic. Have there been any kind of tangible signs yet that maybe they're rethinking some of the sublease space that they put on the market or have given back too much space in your markets as their headcounts actually grew throughout the pandemic? Or is it, you know, maybe too early to tell if that's gonna happen? That's Blaine, the answer is yes. I don't wanna get into the details, but there are specific to our portfolio, but there is a single tenant that has come back to us now and said that they're interested in revisiting this current space, that they had indicated that they were either gonna sublease or leave. On the sort of general market conditions, I do know that just recently in Seattle and Bellevue, that same circumstance occurred with not with our portfolio, but with another portfolio of assets that a couple of tenants have come out and said that they wanna retain their current space and evaluate how the space will lay out. We sort of assumed that was gonna happen. As you've seen, there has been a massive push back. Today, Weyerhaeuser was another tenant that came back out and said they're demanding other tenants coming back. The list of tenants I gave you is on top of where Amazon, you know, started last month. So you're seeing a movement. It though is still, Blaine, disturbing for our quality of portfolio that this really has become really a West Coast issue and not a rest of the country issue. It's sort of a little underwhelming that most of these West Coast companies have not made decisions to either expand space, but maybe just maintain their current platform. We anticipate that to take a little more time, and we're optimistic that it's gonna, you know, as I said earlier, quality assets will prevail first, and so we're seeing that in our portfolio. Okay, great. That's helpful. Then just back on the studio space. Can you talk about whether you expect to see less willingness to sign longer term leases on studio space as a result of the, you know, tougher environment and even potentially as a result of the threat and now reality of a strike and maybe a reversion to the show by show or season by season leasing that used to be a lot more prevalent? I'm gonna have Jeff answer that. Hey, Blaine. This is Jeff. Yeah, I think, you know, the way the industry generally works is it's fundamentally predicated on that show by show model that you're referring to. To a lesser extent, there obviously are long-term leases, but you know, most of the stages and most of the inventory is really going on a show by show basis. Meaning, you know, when a show gets green lit, they, you know, get all the services, including a stage. You know, the long-term leasing it's a big benefit to our portfolio in Sunset. As we expand the business and we scale, fundamentally, you do get into this show by show model, which is kind of how the industry works. It's just the nature of the industry that. You know, I don't think there's gonna necessarily be less demand from studio going forward for long-term leasing. It's just a smaller subset of the overall demand for stages. Got it. Thanks, guys. Thank you. As a reminder, it's star one to ask questions. Our next question comes from Ronald Kamdem with Morgan Stanley. Hey, just a couple quick ones from me. Just going back to the leasing pipeline, which I think you talked about, I think close to two million feet, if I got that number correct. If I compare that to some of the expiring leases and commenced leases, can you just put it all together and let where are you thinking occupancy ends the year at? What are sort of the right zip codes on the occupancy at the end of 2023? Yeah. Deja vu. We finished the quarter at 88.7% leased. You know, we've got two sizable expirations, 60% coverage on the block space in discussions on the other expiration with Amazon towards the end of the year. Our, you know, our success on both of those make a, you know, can make a material difference obviously. Pipeline's really healthy. Pacing on deals isn't as, you know, slower than we'd like. I think it's, you know, it where we end up at the end of the year in terms of occupancy or lease percentage is, you know, predicated on how quickly we get deals done, how successful we are on those backfills or renewals that I mentioned, you know, and we'll have to leave it at that. Understood. If I could just pivot to the balance sheet. If I, you know, you ended the quarter at 8.5 debt to EBITDA I see in the supplement. When you put it all together and the asset sales, maybe can you talk about potentially how much dollars can you get out of that and then the dividend cut? What's the potential for bringing that down this year? Well, yeah, I mean, it will go down. I mean, you're seeing an aberration in large part driven off of the impact of the slowdown at the studios. We finished last quarter prior at like 7.4 debt to EBITDA. Had a slowdown in this quarter. Don't know exactly how quickly that'll resolve itself. Once it normalizes, that component of the portfolio will contribute EBITDA, and we will continue to make inroads on debt repayments in connection with asset sales. You know, the goal remains to get back into the six's and mid-six's or lower if we can. As soon as the studio business resumes, I think you'll see that trend continue. Great. If I could just sneak one in on one west side. Any sort of early indications of what the rate LTVs could be on that? Thanks. Well, yeah, I mean, I mean, right now the loan kind of fully funded at, is at a touch over $400 million. You could run your own numbers, but that conservatively should be 50-ish or maybe less than 50% on any reasonable range of values. We've got indicative indications from our from third-party brokers that we could readily refinance that level. Great. On the interest rate? Yeah, sorry, I didn't hear that. Yeah, I mean, again, it'll depend on kind of where indices move between now and end of 2024. Our view is today it would be a six-ish, mid-six type of rate all in. Great. Helpful. Thanks so much. Thank you. I'd like to hand it back to Victor for any final remarks. Thank you so much for participating in our quarterly call. As always, I wanna call out the Hudson Pacific team for all their hard work and dedication in these challenging times. Have a good day. Thank you. I can confirm this does conclude today's call. Please have a lovely day, and you may now disconnect your line.